Question 1
Basic Concepts'Choice arises because of scarcity of resources'. In discussing this statement, which of the following is NOT correct?
- A.Human wants are numerous but the resources needed to satisfy them are limited
- B.Given numerous wants and limited resources only individuals and business firms make choice
- C.The process of making a choice involves opportunity cost
- D.An economist is not interested in the morality or otherwise of any choice so made
- E.Usually choice is made from a list of wants compiled in the context of a scale of preference.
Show the answer and explanation
Answer: B (Given numerous wants and limited resources only individuals and business firms make choice)
Explanation
Governments and whole societies also face scarcity and must choose, so it is wrong to say only individuals and firms make choices.